Auto Finance

KBB: Average New-Car Prices Rise 2% in February

March 1, 2018
• by Staff

IRVINE, Calif. — Kelley Blue Book put February’s estimated average transaction price for light vehicles at $35,444. That’s up $722 from a year ago but down $96 from January.

Even with new-vehicle demand expected to continue to slow in 2018, average transactions prices have so far been unaffected this year — though incentives have risen similarly to offset part of the extra cost, the firm noted.

“It was another month of solid transaction prices in February 2018, with 2% growth year-over-year,” said Kelley Blue Book analyst Tim Fleming. “The numbers indicate that new-car buyers are still willing to pay top dollar for the latest models with the most current features and technology. Even the new Honda Accord and Toyota Camry are commanding large premiums over their predecessors, despite competing in a rapidly shrinking segment.”

American Honda’s transaction prices climbed 2% in February 2018 — with the Honda brand alone recording a 3% increase. The new Accord posted a 6% increase, while the Odyssey continues to top the minivan segment with a 13% year-over-year increase in its average transaction price.

Toyota Motor Co. posted a 3% increase in its average transaction price behind the strength of its redesigned Camry, which recorded a 9% increase in transaction prices. The Lexus brand posted a 1% increase in its average transaction price, although that should climb in the coming months with its redesigned LS sedan now reaching dealerships.

Another notable manufacturer includes Volkswagen Group, which posted a 7% increase in its average transaction price. The Volkswagen brand alone posted an 8% increase, buoyed by the new Atlas SUV. Porsche transaction prices climbed 8% thanks to the redesigned Panamera, which was up 19%. Audi transaction prices rose 4%, with the redesigned A5 and Q5 showing the most improvement.